Cannabis Ads Must Comply With State Regulations

Licensed cannabis retailers are popping up all over New York State, making it more convenient for consumers to find a State-sanctioned establishment. But with the proliferation of licensed retailers comes necessary regulatory oversight. The Office of Cannabis Management ("OCM") was formed to implement regulations applicable to the production and sale of adult-use and medical cannabis in New York State. Notably, the State regulations govern the marketing of cannabis, among other things. Companies doing business in this space must ensure that their cannabis ads comply with State regulations.

State Prohibits Certain Cannabis Ads and Branding

One important regulatory provision prohibits "cross-tier" conduct, namely engaging in manufacturing and retail of a cannabis product, which includes marketing and branding. In a recent case, the OCM announced a settlement with a manufacturer that violated the rule against both producing and also being on the retail side of the